Bank of Hawaii Reports Lower Earnings for 2011

File photo.

By Sonia Isotov

The Bank of Hawaii today reported fourth quarter earnings for 2011 of $39.2 million and $160.0 million in profit for the year ending 2011.

The fourth quarter earnings for 2011 of $39.2 million is less than the $43.3 million earned in the third quarter of 2011, and the $40.6 million in the same quarter last year.

The net income total for 2011 of $160.0 is $23.9 million less than the $183.90 million earned for the year ending 2010.

“Bank of Hawaii finished 2011 with solid financial performance,” said Peter S. Ho, Chairman, president and chief executive officer, in a written statement. “During the quarter, we were pleased that our loan balances increased across most categories and deposit growth remained strong. Credit quality remained strong during the quarter.”

Peter Ho, Bank of Hawaii. Courtesy photo.

“Our balance sheet remains solid, with high levels of liquidity, capital, and reserves due to our continued focus on disciplined capital and risk management. During the quarter we reduced our shares outstanding by 1.3% and maintained our quarterly dividend of $0.45 per share.”

Diluted earnings per share for 2011 was $3.39 and the board of directors declared $0.45 per share dividend.

Diluted earnings per share was $0.85 for the fourth quarter of 2011, down from $0.92 per share in the previous quarter, and up from $0.84 per share in the same quarter last year.

Loan and lease balances grew to $5.5 billion during the fourth quarter of 2011, increasing by 3.5% compared with the third quarter of 2011. Deposit growth remained strong, growing by 5.8% to $10.6 billion at December 31, 2011.

As a result of continued strength in asset quality and an improving Hawaii economy, the allowance for loan and lease losses decreased by $4.8 million to $138.6 million, representing 2.50% of outstanding loans and leases.

Accruing loans and leases past due 90 days or more were $9.2 million at December 31, 2011, down from $10.9 million at September 30, 2011, and up from $7.6 million at December 31, 2010.

Delinquencies in residential first mortgage and home equity loans continue to be primarily on neighbor island properties.

Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $33.7 million at December 31, 2011 and was primarily comprised of residential mortgage loans with lowered monthly payments to accommodate the borrowers’ financial needs for a period of time.